OilSands Canada Closes IPO at $50 Million

Middlefield Group, on behalf of OilSands Canada, reported that the Fund has completed its initial public offering of 5,000,000 Units at a price of $10.00 per Unit for gross proceeds of $50,000,000. Each Unit consists of one equity share and one-half equity share purchase warrant. Each whole warrant is exercisable at a price of $10.25 and expires on July 31, 2010.

Middlefield Capital will act as the Advisor responsible for managing the Fund's investments, including asset mix and security selection. With approximately $4.0 billion in assets under management, Middlefield has specialized in the oil and gas and mining sectors for many years.

Groppe, Long & Littell, a Houston, Texas based oil and gas consulting firm, will be Special Advisor to Middlefield, providing it with an analysis of the global economic and political forces impacting the prices of oil and natural gas. Henry Groppe, the founder of the Special Advisor, will be the individual primarily involved in providing services to the Fund. Mr. Groppe has over 50 years of experience in the oil, natural gas and petrochemical industries.

The Fund has been created to provide long-term capital appreciation by investing in an actively managed, diversified portfolio comprised primarily of publicly-listed energy-related equity securities of issuers that operate in or have exposure to the Canadian oil sands sector. Additionally, up to 20% of the portfolio may be invested in securities of private issuers which, in the view of the Advisor, are acquisition targets or are likely to become publicly-listed in the near to mid term, thereby offering the potential for capital appreciation.

Based upon the analysis provided by the Special Advisor, it is the view of the Advisor that the Canadian oil sands sector will continue to offer attractive opportunities for investment and considerable growth prospects for oil sands participants. Important attributes of the Canadian oil sands sector include: the quality and size of the oil sands resource base; Canada's politically stable investment environment; and Canada's strategic proximity to the United States, the world's largest energy consumer.

The syndicate of agents was co-led by CIBC World Markets Inc. and RBC Capital Markets, and included BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Capital Corporation, Raymond James Ltd., Dundee Securities Corporation, HSBC Securities (Canada) Inc., Blackmont Capital Inc., Wellington West Capital Inc., Berkshire Securities Inc., Desjardins Securities Inc., Middlefield Capital Corporation, Research Capital Corporation and Richardson Partners Financial Ltd.

The Fund trades on the Toronto Stock Exchange under the symbol OCF.


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